Numerous retailers have looked to Chinese products whenever they stock up on their wholesale supply. This is because the costs of these products are extremely low and is a beacon of hope profit wise for any retailer.
Cheaper prices are well and good however are buying these products the right marketing move for your retail store? Are the wholesale products you are taking on board in line with the image you are trying to build for your outlet? Yes it is true that if one punches the numbers this early in the game the decision to buy Chinese generic brands seem sound. If one can buy these discount apparel on a 75% mark down then the profits when one sells it for retail is astounding China’s silk road economic belt.
An example would be if one buys a blouse, if one buys it from an American wholesale dealer each blouse would probably cost around $10. If one gets it from China however it could cost as low as $2.50. If a regular blouse sells for $20 then I am sure you are already calculating. The profits your store can make are astronomical and one would think that the possibilities would be endless. It would feel like buying regular wholesale supply at discount apparel prices.
However even if the profit margin is solid not all retail stores deal with wholesale dealers that sell Chinese apparel. There are still retail stores that specialize in American made products or branded wholesale supply.
Their reasons may vary but most of them site these reasons. They care more about repeat customers. To some retail stores they build on their repeat clients. That means they need to ensure that the clients are happy with the goods the first time around so that they will seek the retail shop again and become a regular. This means more stringent quality control is needed. Most branded products manufactured in the US have an additional quality control process. This is one of the reasons it costs more. Although the wholesale products from china may cost less because the quality of branded wholesale supply is better customers do not mind to pay more for it. So even if the profits are not astronomical a tidy profit is still to be had. Plus the long term benefits of repeat customers still adds to the over all profitability of a business. I also practice this in my own life. There are shops that I go to on a regular basis and I will buy an article of clothing from them around once a month. This is because clothing like other items need to be replenished on a regular basis and if one becomes a regular in a shop this is a sure profit for the store on almost a monthly basis. Brand recognition is also a reason why some stores still use US or branded wholesale products. Consumers will pay premium prices for brands they trust. A higher price tag will not deter them. This is what most retail shops strive to have whenever they stock up. Is through their products create a good quality brand recognition that the customers will be loyal to.